In what could represent a landmark legal development for the crypto industry, the US law firm Holland & Knight served on a defendant with a temporary pre-trial injunction as a non-fungible token (NFT), acting in a legal case involving his client, crypto exchange LCX.
For the “first time in history”, “a temporary restraining order (TRO) to a defendant had been served via NFT”, according to the exchange.
“This innovative method of serving an anonymous accused has been endorsed by the New York Supreme Court and is an example of how innovation can bring legitimacy and transparency to a market that some consider ungovernable.”
Likewise, Monty Metzger, CEO and Founder of LCX, tweeted that the court order “marks a historic milestone for the blockchain and crypto industry, as a sign of maturity and new transparency,”
In a statement, Holland & Knight said the NFT subpoena was created and airmailed to the defendant by the law firm’s asset recovery team. They called it a “service token” or “NFT service”.
The on-chain process, LCX said, can be found on the Ethereum (ETH) blockchain.
The court case involves a hacking attack on the exchange that took place in January. LCX said in a statement that the theft erased nearly $8 million worth of crypto, but around 60% of the stolen funds were frozen. The attack targeted one of the exchange’s hot wallets.
“All other LCX hot wallets and confidential customer data were unaffected and were not involved in this security incident,” according to the statement.
Law enforcement agencies from the United States, Liechtenstein, Ireland and Spain, who participated in an international investigation, tracked the funds laundered by the Tornado Cash crypto mixer and identified the hacker wallets involved.
Some 500 ETH has been frozen under a Liechtenstein court order served by Irish law enforcement for Coinbase Europeand an additional 1.3 million USDC is frozen by Consortium Center based on a US court order obtained from the New York Supreme Court, LCX said.
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‘First Ever’, US Law Firm Issues NFT Subpoena In Exchange Hacking Case
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